Four Big Retailer Reporting Quarterly Numbers This Week

Tuesday, December 3, 2019 7:41 AM | Michael Fowlkes

Black Friday officially launched the all-important holiday shopping season for retailers.

Online retail was strong again this year, with online sales up 17% over the weekend versus last year. Foot traffic in brick and mortar retailers was off 6% year over year.

The recent earnings season was good for retailers, in particular, discount retailers. Strong economic conditions and low unemployment has boosted consumer confidence and spending which should lead to a strong holiday shopping season for most retailers.

While most big-name companies have already posted their quarterly numbers, there are still plenty of companies left to report their quarterly numbers. Here are four big-name retailers scheduled to release its quarterly numbers this week.

Dollar General (DG)

Discount retailer Dollar General (DG) reports its third-quarter numbers on Thursday. The retailer will release its quarterly numbers before the market opens with the consensus calling for earnings of $1.38 per share. Strength in the overall market and low unemployment has kept consumer confidence high, and discount retailers have been particularly strong. DG stock hit an all-time high in October after gapping higher in late August following better than expected Q2 earnings and sales. The stock is reasonably priced at 21 times future earnings which are forecast to rise at an annual rate of 10.5% over the next five years. Dollar General has posted better than expected top and bottom line numbers the last two quarters and the street expects another earnings beat this quarter with a whisper number of $1.39. DG trades at $155.49 with an average price target of $166.22.

Kroger (KR)

Grocery chain Kroger (KR) is scheduled to release its third-quarter numbers before the market open on Thursday. Analysts forecast earnings of $0.48 per share, in-line with the same period last year. Kroger has been shuttering its under-performing stores, and earnings have risen 4% annually over the last five years. Looking ahead analysts expect profits to rise at an annual rate of 5% over the next five years. The stock is currently up a modest 0.3% on the year after a solid upward trend since hitting a 52-week low in late July. KR shares remain attractive with a forward P/E of 11.8. Even with earnings forecast to rise at just 5% annually, there is upside in the stock based on its current valuation. KR is now trading at $27.60 with an average price target of $27.35. Last quarter the company posted mixed results with an earnings beat and a small revenue miss. For the most recent quarter, the street expects to see a small earnings beat with a $0.50 whisper number. If the company is able to hit the whisper number the stock should move more into positive territory and analysts will start to lift their price targets.

At Home (HOME)

Home goods retailer At Home (HOME) reports Q3 numbers on Wednesday. The company will report its quarterly numbers after the market closes with the consensus calling for a loss of two cents per share. During the same period last year, the company earned $0.18 per share. The stock took a big hit at the start of June after a second-straight earnings miss. The stock rebounded after the selloff but has traded sideways over the last three months after mixed numbers in September. The street expects a small earnings beat of a loss of one penny. The company is expected to grow earnings at an annual rate of 14.6% per annum over the next five years and HOME is currently trading at just 8.5 times earnings. With the low valuation, there is a lot of upside potential if the company is able to hit its whisper number. Should HOME report a surprise profit for the quarter shares will move sharply higher given the current valuation and HOME being down 55% on the year. HOME trades at $8.41 with an average price target of $11.19.

Five Below (FIVE)

Specialty retailer Five Below (FIVE) has traded sideways over the last three months. The retailer is expected to post third-quarter earnings on Wednesday after the market close with the consensus calling for earnings of 17 cents per share. During the same period last year, the company posted earnings of 25 cents per share. FIVE stock has traded sideways over the last three months after the specialty retailer posted mixed Q2 results in late August with an earnings beat and revenue miss. The company has posted better than expected earnings in the last 11 quarters with sales topping estimates 10 straight quarters before its Q2 miss. The street expects another small earnings beat this quarter with a whisper number of $0.18. If Five Below is able to hit its earnings estimate and post in-line or better than expected sales the stock should break out of its sideways trend. HOME trades at just 8.5 times earnings and analysts expect the company to grow earnings at an annual rate of 14.6% over the next five years. HOME is trading at $8.41 with an average price target of $11.19.

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